The use of effectuation in projects: The influence of business case control,portfolio monitoring intensity and project innovativeness

Project management approaches are evolving to be more flexible and adaptive to meet the challenges associated with an increasingly complex and dynamic environment. However, potential changes in the underpinning logic supporting project decision making have scarcely been considered. We investigate the role of effectuation, a decision logic most commonly associated with entrepreneurship, as an alternative decision-making approach to the rational ‘causation’ logic that has traditionally underpinned project management processes. We develop and test a model to explore the portfolio- and project-level influences on the application of effectuation in project management. We find that portfolio governance mechanisms related to business case use and portfolio monitoring inhibit the use of effectuation, while project innovativeness is associated with increased use of effectuation. The paper contributes to research and practice by empirically investigating the antecedents to the use of effectuation decision-making logic in project and portfolio management through a multi-level model.     

Project,program and portfolio management as modes of organizing: Theorising at the intersection between mergers and acquisitions and project studies

Although the management of mergers and acquisitions (M&As) and of projects are connected in practice, they remain disjoined in academia. In this paper, we conceptually bridge the literature on projects and M&As to discuss the transitory nature of organisations by mobilising the concepts of project, programme, and portfolio as alternative modes of organising M&As. As a project, the managerial effort in M&A focuses on completion on time and budget. As a programme, M&As are managed as complex processes of convergence between organisations. As a portfolio, M&A management is part of the ongoing integration efforts within organisations that have grown via M&As. Our contribution to project studies is to position projects, programmes, and portfolios as modes of organising, hence, not as phenomena but as managerial choices used to shape strategic change initiatives, such as M&As. We conclude with implications beyond project studies, thereby drafting a project-based theory of the firm.     

Formalization of project portfolio management: The moderating role of project portfolio complexity

Companies frequently implement formalization to improve success. Previous research has found supporting evidence for the performance-enhancing effects of formalization in both single project management and project portfolio management. However, there is no research on how formalization at the project level interacts with formalization at the portfolio level, or on how this interaction may impact success. This study investigates the interaction of formalization at both levels and examines the moderating effect of project portfolio complexity on formalization. Using a sample of 134 firms, this study shows that single project management formalization and, likewise, portfolio management formalization are directly connected to portfolio success. Simultaneous formalization at these two levels delivers a complementary effect, resulting in an increase in success that is more than additive. A contingency analysis confirms that the proposed positive effects become more prominent if complexity is high. Complexity measured as project interdependency has a stronger moderating effect than complexity measured as portfolio size.     

Project portfolio management in practice and in context

Companies struggle with the sub-optimization and changes among their projects, even if various normative instructions and good practices have been introduced for project portfolio management. At the center of this paper is the need to understand project portfolio management in practice and in context. The purpose is to report a review on recent empirical research literature regarding project portfolio management, to draw attention to the limitations with viewing portfolio management as a rational decision process, and to develop new avenues for research regarding project portfolio management in practice and in context. As a result, this paper shows that, to respond to uncertainties and complexities in business environments, project portfolio management can be viewed as negotiation and bargaining and as structural reconfiguration, besides rational decision processes. These alternative perspectives offer new insight into the dilemmas identified in day-to-day project portfolio management and open up avenues for resolving them, thereby promoting success in project portfolio management.     

Identifying,framing and managing uncertainties in project portfolios

Uncertainties in the organization, external environment and from single projects may hamper project portfolio performance unless managed properly. This paper introduces a framework on uncertainties and their management in project portfolios and pursues increased understanding on how managers can take uncertainty into account better. We explore uncertainties, how managers frame them as opportunities or threats, and the actual practice of managing them across ten R&D project portfolios. The framework on project portfolio uncertainties and their management is further refined based on the empirical results. As key contributions, we show evidence on the balanced existence of three types of uncertainties, the threat bias in their framing, and the dominance of rational, opportunity driven mechanisms of control in uncertainty management. We discuss the context-dependent practice of project portfolio management and the need to complement rational mechanisms with structural and cultural, for project portfolio management to become a dynamic capability.     

Client versus contractor perspectives on project success criteria

There are case studies that suggest an obstacle to effective client–contractor working relationships is a failure to agree on measures of success and a failure by the client to consider the needs of stakeholders, though there has been little systematic research in this area. The aim of this paper is to report the findings of an empirical study that compares the measures of success emphasised as important by client and contractor organisations and the extent to which differences of emphasis is translated into project management practice. The results show that contractors put more emphasis on minimizing project cost and duration, whilst clients put more emphasis on satisfying the needs of other stakeholders. However, in their project management practice clients show no stronger focus on meeting stakeholder needs than contractor organisations. Implications of these results are discussed in the context of possible barriers to effective client–contractor working relationships.     

Microfoundations of project portfolio regulation in joint university-industry laboratories

Joint university-industry laboratories (joint U-I labs) consist of a new, yet little understood model of academic partnership with the firms, typically involving the establishment of a collaborative research unit to conduct research and development (R&D) projects. This type of collaboration faces an ongoing challenge in dealing with the tension between the development and deployment focus in the project portfolio. While several studies have investigated project portfolio management in a given firm, little is known about the interorganizational portfolio management and how the actors manage tensions in joint U-I labs. This study aims to investigate the microfoundations of project portfolio management in joint U-I labs. By combining the multiple-case study and at-home ethnography methods, we identified that the regulation approach explains how partners in joint U-I labs dynamically adjust and manage the project portfolio. Based on the empirical findings, we propose a new framework for project portfolio management in joint U-I labs: portfolio regulation. This framework consists of four processes: dual scouting, dual matchmaking, joint selection, and bridgemaking. These microfoundations enable actors to strategically regulate the portfolio by increasing/decreasing resources related to development or deployment. Our study explores how portfolio regulation evolves within a joint U-I lab through four stages: formation, learning, reconfiguration, and joint portfolio. The proposed framework contributes to interorganizational R&D portfolio management theory and joint U-I lab portfolio management practice.     

Complex project management as complex problem solving: A distributed knowledge management perspective

Traditional project management (PM) privileges planning and downplays the role of learning even in more complex projects. In contrast, this paper draws inspiration from two organisations that were found to have developed complex PM expertise as a form of complex problem solving (CPS), a practice with implicit learning because complex projects are unable to be completely specified in advance ( Hayek, 1945). Central to this view of complex project management as a form of complex problem solving is the governance challenge of knowledge management under uncertainty. This paper proposes that the distributed coordination mechanism which both organisations evolved for this contingency can best be characterised as a ‘common will of mutual interest’, a self-organising process that was fostered around project goals and paced by the project life cycle ( Kogut and Zander, 1992). The implications for theory, research, and practice in complex PM knowledge management are examined.     

An empirical investigation on how portfolio risk management influences project portfolio success

Project risk management is recognized as essential in order to cope with the challenges arising from the environment. Literature suggests a portfolio-wide perspective for managing risks in project portfolios. However, research on risk management and its success in a project portfolio context is scarce. This study examines how portfolio risk management influences project portfolio success. Using a sample of 176 firms, this study provides evidence that portfolio risk identification, the formalization of the portfolio risk management process, and risk management culture directly influence risk transparency, whereas risk prevention, risk monitoring, and the integration of risk management into project portfolio management are directly connected to risk coping capacity. The findings also suggest that both risk transparency and risk coping capacity have a direct impact on project portfolio success. However, the results did not confirm the hypothesis that risk transparency and risk coping capacity have a complementary effect on success. Implications for scholars and project portfolio managers are discussed.     

Practices,projects and portfolios: Current research trends and new directions

Project portfolio management (PPM) bridges strategy and project management. Traditional research in PPM has primarily investigated the rational, top-down and structural aspects of strategizing. By doing so, it has failed to focus on the underlying practices that are triggered by the strategy and how these practices frame strategy implementation. Practice-based research provides a methodological lens to explore the reality of strategic enactment through the project portfolio. Practice-based perspectives are under-represented in PPM research; therefore the aim of this paper is to provide an agenda for further practice-based research in PPM. Central to this agenda is a concern with various aspects of practice, including its discursivity, representation, dynamic capabilities, leadership and materiality.     

From outpost to outback: project career paths in Australia

With the growth in project management as a form of work organisation in many sectors of the economy has come the significant rise in the number of project managers and project team members. This change in work organisation brings issues in forging career paths and determining career support in work situations that are often dynamic, short lived and intense. In the relatively small but substantially robust Australian economy, a unique labour market and the tyranny of distance bring their own difficulties. Innovative and collaborative project structures and increasing prevalence of contract work provide both challenges and opportunities for new career pathways in many industries. A growing percentage of Australia's workforce is employed in project-based or project-oriented organisations, leading to the claim that Australia is a project-based economy. This provided a context for our research into the career paths and the issues of career management for project managers working in a project based economy. Using in-depth interviews with project managers from three industry areas we found generational and gender differences in experiences of work, workplace support and mentoring for career development. For a continued strong performance in this economy, organisations that employ project personnel will need to consider how they will ensure the supply of high quality project professionals into the future.     

Impact of relationship value on project portfolio success — Investigating the moderating effects of portfolio characteristics and external turbulence

Companies today need project portfolio management (PPM) to cope with the increasing number of projects and use it to ensure comprehensive management, strategic alignment, and efficient use of resources. Moreover, customers are demanding more value from their suppliers. The management of a project portfolio and the corresponding customer relationship portfolio implies a link between PPM and relationship management. By combining the fields of PPM and marketing, this study hypothesizes a connection between relationship value and project portfolio success. Because both parties need to extract value from a relationship, relationship value is divided into relationship value for the customer and relationship value from the customer. The results are based on a cross-industry sample of 174 German, Swiss, and Austrian medium-sized and large companies and rely on two informants from each firm. We find a significant relationship between relationship value and project portfolio success as well as moderating effects of portfolio interdependency, portfolio size, and technological turbulence.     

Investigating the rationale for adopting an internationally-recognised project management methodology in Ireland: The view of the project manager

As businesses become more dependent on technology, effective project management has been recognised as a necessity, in order to lead and deliver quality software applications on time and within budget. One possible option in software projects is the use of a project management methodology. This exploratory research examines why organisations with an existing project management methodology are transitioning to an internationally-recognised methodology, and why organisations that do not have a project management methodology are implementing an internationally-recognised methodology. Results of five case studies suggest that while an in-house project management methodology can work well within an organisation, the benefits of using an internationally-recognised methodology should be considered. These include: the assurance that the organisation is using what is considered to be best-practice; demand from external customers that a recognised methodology is used; assistance with external recruitment; and the availability of suppliers of the methodology for training and support.     

Construction programme management theory and practice: Contextual and pragmatic approach

The combination of the economic pressures, maturity and limitations of project management and the dynamic nature of the construction industry clients’ requirements has triggered the need for the adoption and implementation of programme management as a de facto means of aligning, coordinating and managing a portfolio of construction projects to deliver benefits that would not be achievable if the projects were managed independently. Despite the benefits achievable in the practice of programme management, the awareness and understanding of its practice in the construction industry remains vague as a result of a lack of clarity and inconsistencies associated with its definitions. To fully understand the core essence of programme management, it is imperative that its quintessential definition, practice and context are clearly understood and documented. This research is based on a pragmatic synthesis of literature review and industrial questionnaire survey which establishes the relationship, similarities and differences between programme management and project management and subsequently draws comparisons of the practices relevant to programmes between programme and non-programme organisations. The research further highlights the implications of unawareness and lack of understanding that can affect the effective implementation and practice of programme management in the UK construction environment.     

The integration of ideation and project portfolio management — A key factor for sustainable success

Effective management of single projects is no longer sufficient. In today's business market, proactive management of the whole project portfolio has become increasingly important for achieving long-term success and competitive advantage. At the front end of projects, opportunities are discovered, ideas are created, and the foundation for later project, portfolio, and, eventually, corporate success is laid. This paper contributes to the project management body of knowledge by combining the front end view on projects with the holistic view of managing project portfolio landscapes. It focuses on establishing a framework for conceptualization of the relationship between ideation and project portfolio management in product development environment by relating ideation portfolio management, front end success, and project portfolio success, and lays the groundwork for further empirical research. The overarching topic I address is the conceptualization of how ideation can facilitate and sustainably improve portfolio success in the product development environment in the long-term.     

Project portfolio management: An integrated method for resource planning and scheduling to minimize planning/scheduling-dependent expenses

It is well known that the progress of R&D projects has more and more begun to rely on the availability of individual experts who are generally scarce and expensive. The matrix structure considers periodic staffing of project teams which has been found to be efficient for non-scarce human resources but is impractical for individual experts. Our objective is to develop and evaluate an alternative approach for resource planning and scheduling that might be useful for project portfolio management. The method we suggest is an extension of a recently developed optimization model for a job-shop with several machines and chance-constrained deliveries. Our method determines in advance the hiring and releasing points of individual experts that maximize economic gain subject to chance-constrained delivery commitments. For this purpose, we use a simulation based on a greedy priority dispatching rule as well as a cyclic coordinate descent search-algorithm. A benchmarking of the staffing of project teams and the integrative methods shows that integrated planning and scheduling is a very useful tool for the decision-making process in project portfolio management.     

Project portfolio management information systems’ positive influence on performance – the importance of process maturity

Companies increasingly support their project portfolio management processes with specific software, and the market for IT solutions is growing. While project portfolio management information systems (PPMIS) promise to improve the quality of the management process and eventually portfolio performance, it is unclear whether they actually deliver on this promise. We lack empirical evidence regarding the actual benefits of PPMIS and knowledge on the conditions under which PPMIS application is most beneficial. Using a sample of 181 project portfolios, this study shows for the first time that PPMIS application is overall positively associated with the quality of portfolio management processes and project portfolio success. However, moderation analyses further reveal that these effects only materialize when formalization of single project management, project portfolio management, and risk management are sufficiently high. Surprisingly, the benefits of PPMIS application do not depend on portfolio complexity (size, project interdependency, dynamics).     

Managing knowledge and knowledge competences in projects and project organisations

While project organisations have become common, knowledge management of project organisations are still largely underdeveloped. Nevertheless, project organisations require particular systematic and effective knowledge management if they are to avoid knowledge fragmentation and loss of organisational learning. This study deals with knowledge management and knowledge competences in project organisations, particularly framework programmes. In addition to a literature study, two programmes and a review project have been studied. Finally, a Learning Programme Model is presented.     

IT project management control and the Control Objectives for IT and related Technology (CobiT) framework

Motivated by scarce academic consideration of project management control frameworks, this article explores usage, value and structure of frameworks with a focus on the popular Control Objectives for IT and related Technology (CobiT) construct. We attempt to add to an empirically validated structure of internal control over IT project management by including CobiT's views on the intended domain of content. Results from the empirical survey indicate that the metrics suggested by CobiT are regarded as feasible and important by project management professionals, and are regularly used in controlling practice. Experience, regularity of significant projects and the size of the hosting organisations, however, seem to be stronger moderators of success rates than the use of a management control system with or without support of CobiT. CobiT's suggestions are of generic nature and in particular useful for programme performance management. The latent dimensions of project quality on process and activity levels were not validated and gaps to other project assessment models were identified.